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Introduction
In August 2016, the signing of SB 710 introduced significant changes to the Real Estate Law regarding “team names.” That's why we want to provide clear and up-to-date answers to the most frequently asked questions on the subject. look at these DRE FAQs.
What is a “Team Name”?
A “team name” is a statutory terminology described in Section 10159.7 of the Business and Professions Code. Essentially, it represents:
- A professional identity or brand name.
- Used by a seller and one or more real estate licensees.
- Implemented for the provision of real estate services.
Essential Components of a “Team Name”
- Surname inclusion: It is essential that it contains the last name of at least one of the team members, in conjunction with words such as:
- “group”
- “team”
- “associates”
- Allowed words: Terms like “realty” or “real estate” are allowed, as long as other conditions are met, such as: “Smith Real Estate Team”.
- Prohibitions: It is essential to avoid words that could lead the public to believe that the team is an independent entity from the responsible rider. These include:
- “broker”
- “real estate brokerage”
- “real estate broker”
Advertising and “Team Names”
- Not a fictitious name: According to the Real Estate Law, a “team name” is not considered a fictitious business name, which means that it is not necessary to submit additional paperwork to the DER to use it.
- Advertising requirements: Advertising materials must:
- Show the “team name”.
- Include the last name and license number of at least one of the licensed members.
- In certain circumstances, highlight the identity of the responsible broker, either through name, license number, or both.
Identity of the Responsible Broker
The “identity of the responsible broker” is a concept defined in Section 10015.4 of the Business and Professions Code. This identity:
- It represents the name under which the broker is licensed.
- It may include the name and/or associated license number.
